Ford reportedly has dismissed US International Trade Commission criticism over its decision to pursue battery contracts with SK Innovation.
According to Reuters, the ITC said the automaker pursued new contracts even after evidence emerged the South Korean electric vehicle (EV) battery maker misappropriated trade secrets from domestic rival LG Chem.
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By GlobalData"Contrary to the ITC's assumption, Ford was committed to three additional battery programs tied to SK Innovation before any misconduct had surfaced," Ford said, adding "key facts would have emerged if the ITC "conducted a public interest hearing".
The ITC did not immediately comment to Reuters.
The news agency report said ITC last month sided with LG Chem in its trade secrets claims, issuing a limited 10 year exclusion order prohibiting imports of lithium-ion batteries made by SK Innovation (SK).
It permitted SK to import components for domestic production of batteries for Ford's F-150 EV truck programme for four years, and for Volkswagen's MEB electric vehicle line for North America for two years.
Reuters noted SK had warned the ITC decision would force it to halt construction of a US$2.6bn battery plant in Georgia if it was not overturned by President Joe Biden.
In a redacted opinion released on Thursday, the ITC questioned why Ford pursued battery contracts with SK Innovation after SK's misconduct in this investigation had come to light.
It said Ford sought business with SK even after a company employee was deposed in November 2019 in the commission's investigation and when the automaker only had a contract with SK to supply batteries for the F-150 EV.
"There is no explanation in the record why Ford would choose to ignore or excuse SK's egregious misconduct," the ITC said, according to Reuters.
"The fault here belongs with SK, as well as with those, like Ford, who deliberately chose to continue to cultivate prospective business relationships predicated on SK's trade secret misappropriation."
Ford told Reuters it "does not condone the actions SK Innovation is accused of – particularly misappropriating trade secrets and destroying evidence in the course of an investigation."
LG Chem noted the ITC ruling found SK misappropriated LG trade secrets worth billions of dollars spanning the entire electric vehicle battery business, Reuters added.
